Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The trial balance for Pina Colada Corp. on August 31 is as follows: Pina Colada Corp. Trial Balance August 31, 2020 Debit Credit $5,000 3,100
The trial balance for Pina Colada Corp. on August 31 is as follows: Pina Colada Corp. Trial Balance August 31, 2020 Debit Credit $5,000 3,100 1,550 20,200 147,000 $21,168 14,000 Cash Prepaid insurance Supplies Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Accounts payable Unearned rent revenue Notes payable Common shares Retained earnings Dividends 3,780 4,350 4,000 78,000 82,000 4,950 5,150 Rent revenue 70,500 46,078 Salaries and wages expense Insurance expense Interest expense Utilities expense Repairs and maintenance expense 10,850 3,900 8,250 3,670 78,000 82.000 Notes payable Common shares Retained earnings Dividends 4,950 5,150 70,500 Rent revenue Salaries and wages expense Insurance expense Interest expense Utilities expense Repairs and maintenance expense 46,078 10.850 3,900 8,250 3,670 $268,748 $268,748 Additional information: 1. 2. 3. The balance in Prepaid Insurance includes the cost of four months premiums for an insurance policy that will expire on September 30, 2020. An inventory count on August 31 shows $530 of supplies on hand. Buildings and equipment are depreciated straight-line. From the date of purchase, the buildings have an estimated useful life of 25 years, and the equipment has an estimated useful life of 10 years. For both asset categories, residual value is estimated to be 10% of cost. (i) Rent revenue includes amounts received for September rentals in the amount of $7,000. (ii) Of the unadjusted Unearned Rent Revenue of $4,000, one half was earned prior to August 31. Salaries of $385 were unpaid at August 31. Rental fees of $860 were due from tenants at August 31. Use Accounts Receivable. The note payable interest rate is 10% per year, and the note has been outstanding since December 1, 2019. No principal repayments are due. Interest is paid twice per year (on June 1 and December 1). 4. 5. 6. 7. Journalize the adjusting entries on August 31 for the three-month period June 1 to August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. Insurance Expense 2325 Prepaid Insurance 2325 2. Supplies Expense 1020 Supplies 1020 3. Depreciation Expense Accumulated Depreciation - Buildings (To record depreciation on buildings) (To record depreciation on equipment) 4. (Adjusting entry for rent revenue received for September) Accumulated Depreciation - Buildings (To record depreciation on buildings) (To record depreciation on equipment) 4. (Adjusting entry for rent revenue received for September) (Adjusting entry for unearned rent revenue earned during August) 5. 6. 7. Prepare an adjusted trial balance as at August 31. Pina Colada Corp. Adjusted Trial Balance Debit Credit $ $ $ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started